AFRF Newsletter Issue 4 - 2022-12-12

Empower

A flexible pension (living annuity)

This type of pension is linked to the value of your investments and must be managed. You can choose to receive an income of between 2.5% and 17.5% of the value of your investments each year and how regularly it will be paid to you. If you choose an income that is higher than the amount that your financial adviser recommends, you could run out of money or your pension could reduce.

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The Financial Bunny

Have you heard about the Financial Bunny on YouTube (Nicolette Mashile)?

Nicolette is a co-host on the SABC1 talk show Daily Thetha and an actress on the popular South African soapie: Generations. She has also published her own book called What’s Your Move – A Collection of Financial Lessons. Nicolette uses the Financial Bunny as a platform to teach financial literacy to South Africans.

In this podcast, the Financial Bunny debunks the myth that group benefits only apply to you alone in the workplace. The fact is that group benefits can extend to your family members. They are provided to sustain your life outside the workplace and after you retire.

Group benefits include:

• healthcare

• financial and investment planning

• retirement planning

• group risk, in other words, life and disability cover

Watch this short and interesting podcast here

‘… knowledge is power and education is the key to success. Therefore, you will never be disadvantaged for knowing more than enough, particularly about financial matters.’

– Nicolette Mashile

Understanding your retirement fund

To make the most of what your retirement fund has to offer you, you need to understand how it works. Here are some ‘did you knows’ that you might not have known that could help you understand when financial help is available:

financial advice if you pass away?

If you pass away, the money should go to your beneficiaries. The fund will arrange for a financial planner to contact them to help them preserve and invest the money. This is specifically aimed at beneficiaries who are 18 years and older.

This means that your beneficiaries will either be contacted by cellphone or email, depending on the information you specified on your nomination form. It is therefore important for you to regularly update your nomination form when your circumstances change.

be contacted?

Side note: as long as all the details on your nomination of beneficiary forms are correct and up to date, and your employer notifies the fund of your passing.

A retirement savings payout for death benefits

Beneficiaries will be traced and contacted after the trustees have decided how to share out the death benefit.

‘Financial education is not meant to bore you, and it is not reserved for financial advisers or accountants. It’s meant to empower everyday people to make life-saving decisions and use the financial tools that the industry and its innovative professionals turn out every day.’

–

Nicolette Mashile

A life insurance payout for life cover

Your beneficiaries will be contacted shortly after the fund is notified of your passing. In this case, the fund is the broker for your life cover from your employer.

That’s right, if your beneficiaries have their own financial adviser or they don’t want advice they can decline the assistance – no questions asked.

Remember to keep all your nomination forms up to date with your latest beneficiaries. There are forms for the funeral benefit (if applicable), the life insurance payout for an insured death benefit and your retirement savings.

You can update these forms on AF Online and the AF Mobile app, otherwise you can get the form from your HR department.

Update on the two-pot system – access to retirement savings

Members of the Alexander Forbes Retirement Fund (AFRF) have been asking some important questions about the proposed two-pot system. Here is one of the most common questions, and the answer:

When will the two-pot system be implemented?

One of the first things to understand is that these proposed regulations are still proposals – any changes would only affect future savings after the necessary laws and rules have been implemented. The implementation date has been postponed to 1 March 2024. It is a complicated arrangement and, as a result, it is taking longer than expected to set up.

As for now, you can’t access any of your retirement savings while you are an active member of the fund. We will keep you updated on the progress as it happens.

Not expecting a bonus? Eight tips to help you save for future December holidays

Tip 1

Set up a money market account or 32-day notice account. Draw this money in November each year and make your own bonus happen.

‘Start applying the knowledge you have. And if you are not clued up on key financial terms or how to apply them, today is the perfect day to start your research. For example, if you find yourself with “more month than money”, perhaps there’s a problem. You may be living beyond your means.’

Tip 2

Shop with a friend: put your money together to get two-for-the-price-of-one grocery items at a reduced price. Use the rest of the money for your December celebration.

– Nicolette Mashile

Tip 3

Go through your budget: carefully check your expenses and see if there is anywhere that you can save:

• Get new insurance quotes

• Make sure you aren’t over-insured: for example, you can’t take out three funeral policies and claim from all three

• Make use of your loyalty rewards at various places (like Alexforbes Rewards)

Tip 5

Use a talent you have to make extra money, for example if you bake nice biscuits, bake extra and sell them to friends and family.

Tip 7

Carpool: instead of spending extra money on petrol, do your shopping with friends and split the petrol costs.

Tip 8

Attend events or visit nature reserves that are free and save some of your entertainment money.

Tip 4

Buy what you can buy early so that by the time December comes you have already stocked up on extra coffee, sugar and meat (which you buy in bulk for less).

Tip 6

Check if shopping online is going to save you money rather than driving to the shops and paying for petrol and parking. It might be worth it for the convenience and time saved alone.

My Money Matters Toolkit

Our My Money Matters Toolkit provides guided decision journeys for important financial decision moments during your working life and beyond. Our aim is for every person to make informed financial choices and access the support they need to make decisions that are right for them.

Website: https://mymoneymatters.alexforbes.com/ Email: mymoneymatters@alexforbes.com Telephone: 0860 000 381

Alexforbes Rewards brings you summer holiday travel deals

We partnered with Randgo to give you a digital mall for excellent discounts on day-to-day necessities like food, household goods, toiletries, airtime and even travel.

Look at these incredible travel deals that are available to you this festive season:

Are you starting a new job, leaving a Alexforbes, retiring soon, or just trying to achieve your financial goals? You qualify for an incredible 60% off normal rates. Cottage standard rooms: normal rate R1 630 per person sharing per night. Members pay R652.

Luxury rooms: normal rate – R2 040 per person sharing per night. Members pay R816 per person sharing per night, breakfast included.

Rate valid until 19 December 2022.